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06 Aug

Afghanistan’s Mineral Sector; AFN 415 Billion Investment in 21 Major Mines and Its Economic Impact

by Kamran Noori

Afghanistan’s Mineral Sector; AFN 415 Billion Investment in 21 Major Mines and Its Economic Impact

Afghanistan’s vast natural resources are seen as one of the most important foundations for the country’s long-term economic development. According to recent reports, a total of AFN 415 billion has been invested across 21 major mines throughout the country. These mines include valuable resources such as gold, iron, ruby, chromite, coal, lead, tin, and cement. The investments span exploration, extraction, and processing stages, and are distributed across various provinces including Herat, Ghor, Kandahar, Takhar, Baghlan, Kabul, and Parwan.

Each of these mines carries its own economic significance. Some contribute to domestic needs, while others hold great potential for export to international markets. For instance, gold mines are especially valuable in global markets and represent a major opportunity for increasing national exports. Mines of chromite and iron provide essential raw materials for the domestic metal and manufacturing industries, while coal plays a key role in energy generation and cement production. Rubies, on the other hand, are among the most sought-after gemstones globally and are considered high-value exports for Afghanistan.

The total investment of AFN 415 billion in the mining sector is expected to have several far-reaching economic effects. It will increase government revenues by expanding domestic resource extraction, enabling Afghanistan to finance a greater portion of its national budget through internal income. At the same time, this sector is generating thousands of jobs, especially in rural and underdeveloped areas, which may significantly reduce unemployment over the long term. Furthermore, by boosting the country’s exports of natural resources, Afghanistan will strengthen its position in global trade and gain access to much-needed foreign exchange.

Estimates suggest that Afghanistan’s mineral wealth could be worth as much as 3 trillion US dollars. To fully harness the economic benefits of this immense potential, the country needs to develop internal processing capabilities so that raw materials can be turned into high-value products locally. This would increase the competitiveness of Afghan exports and allow the country to retain more value from its resources. Additionally, implementing international standards in mining operations and export processes is vital for building investor confidence and aligning Afghanistan with global trade norms. A robust legal and regulatory framework is also necessary to ensure transparency, accountability, and fair management of the sector.

Afghanistan’s mining sector represents a powerful source of hope for achieving economic self-reliance. With effective governance, strategic investments, and sustainable practices, the country can move toward a future in which its natural wealth not only drives economic growth but also elevates Afghanistan’s role as a significant exporter of minerals in the region.

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